BDB and BACB launch new partnership to support business under the InvestEU programme
A guarantee fund of €32 million will unlock loans worth over €160 million for SME development and green projects
The Bulgarian Development Bank (BDB) and the Bulgarian-American Credit Bank (BACB) signed an agreement for the provision of guarantees under the InvestEU programme.
The document was signed by the Chief Executive Officers of BDB and BACB, Tsanko Arabadzhiev and Ilian Georgiev, and by Teodora Pesheva, a member of the Management Board of BDB.
The agreement provides for the use of a guarantee resource amounting to EUR 32 million, which will enable the extension of more than EUR 160 million in new financing to Bulgarian businesses.
BDB provides support under two InvestEU windows – the “Member State” and the “EU” compartments. The financial product is targeted at micro-enterprises, small and medium-sized enterprises, as well as mid-cap companies in need of funding for business expansion, innovation, and increased productivity.
The guarantees will be implemented through two separate financing lines.
The SME guarantee will support more than EUR 150 million in new loans aimed at enhancing competitiveness, digital transformation, modernisation, and job creation.
The sustainable investment guarantee will support green projects with a total value of EUR 10 million, including initiatives related to recycling, waste management, and improving air quality.
“The InvestEU agreement we have signed is another step in expanding the support we provide to our clients. Through it, we offer businesses better access to financing and greater confidence to implement investments with green and social impact. In partnership with BDB and with the backing of European guarantees, we help companies turn their good ideas into viable projects – for the regions, for people, and for the sustainable development of the economy,” said Ilian Georgiev, Chief Executive Officer of BACB.
“With this instrument, the Bulgarian Development Bank translates European policies into real financing for businesses. Our role is to assume risk where the market is more cautious and to support companies with potential for growth, innovation, and sustainable development,” noted Tsanko Arabadzhiev, Chief Executive Officer of BDB.
The support from BDB will enable BACB to expand the scope of its lending, take on higher risk, and offer more favourable terms to businesses.
Two-thirds of the resource will be directed to less developed regions, with the aim of reducing regional disparities and supporting local businesses outside major urban centres.
InvestEU is the EU’s main investment instrument for the 2021–2027 period, aimed at mobilising public and private resources in support of a sustainable economy, small businesses, and innovative projects.
BDB is among the 17 implementing partners accredited by the European Commission to manage instruments financed by the EU budget. The bank obtained this status in 2023.
